- Strong growth in sales and profit
- Momentum continued into new year
- Medium term guidance maintained
Global professional services company JTC (JTC) delivered another strong year of profitable growth in 2024 with revenue rising 18.6% and operating profit up 17.8% to £71.6 million.
Investors have become accustomed to the FTSE 250 company beating expectations and while a gallant effort was made again in 2024 with record new business wins, up 16% to £35.7 million, the full year results were slightly shy of consensus forecasts, sending the shares down 4% to 785p.
RESILIENT DESPITE HEADWINDS
The institutional client services division saw fewer fund launches and IPOs (initial public offerings), yet despite these headwinds, organic revenue growth was ‘robust’ at 9.9% and the annualised value of new business matched the prior year record.
The private client services division saw revenue increase by 32.3% to £124.5 million while underlying EBITDA (earnings before interest, tax, depreciation, and amortisation) grew 35% to £46.4 million.
New business wins jumped by an ‘excellent’ 49% to £15.2 million driven by a strong performance in the US, Cayman and Jersey Islands.
Once the transformational purchase of Citi Trust from Citi Group (C:NYSE) completes at the end Q2, the US will become the group’s largest market by revenue.
WHAT DID THE COMPANY SAY?
CEO Nigel Le Quesne commented: ‘2024 was the first year of our Cosmos era business plan and we have made a fast start towards our goal of doubling the size of the Group for the third time since IPO.
‘We delivered record new business wins, organic growth above our upgraded guidance and a strong margin, even as we continue to invest in growth.
‘Alongside the strong organic performance, we announced or completed six acquisitions during the period, including Citi Trust, the global trust company business of Citi Bank.
‘This is a significant addition to our PCS Division and cements JTC’s position of the world’s leading independent trust company business.’
When asked about the secret to JTC’s continuing success Le Quesne told Shares that a big part is down to the group’s unique shared ownership culture and JTC’s strong reputation for delivering excellent client services, built up over four decades.
The company said it has made a good start to the new year and maintained medium term guidance which calls for greater than 10% net organic revenue growth and an underlying EBITDA margin in the range of 33% to 38%.
Berenberg said the results offered ‘much to be enthused about’ and called out JTC as a ‘safe haven asset’ against a volatile, uncertain market backdrop.
